Analysis and Recommendation: The USD/JPY tumbled 1.16 to trade at 120.90 as traders moved to risk off trading with the yen the benefactor as the US dollar
The USD/JPY tumbled 1.16 to trade at 120.90 as traders moved to risk off trading with the yen the benefactor as the US dollar continued to fall as China is stressing the Federal Reserve decision in a few weeks. Markets are globally spooked after Friday’s decline in equities.
The U.S. dollar traded in the upper 121 yen range early Monday morning in Tokyo, slightly down from levels on Friday in New York where the dollar slipped to a near five-week low on concerns about the global economic outlook.
On Friday, the dollar briefly fell to 121.82 yen, with the safe-haven yen bought as fears of slower Chinese economic growth cast a shadow over the global economy, hitting commodities and world stock markets. Tokyo stocks plummeted in early trading Monday, with the Nikkei index briefly falling more than 500 points, as investor sentiment was crushed by massive declines on Wall Street before the weekend and the yen’s steep gains against the U.S. dollar.
The safe-haven yen rallied and key government bonds were bought from the widespread unrest in the financial markets set in motion nearly two weeks ago when China devalued its currency and generated fears about the state of its economy.
Fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday and left the Dow industrials more than 10 percent below a May record. A 0.6 percent fall in S&P 500 mini futures suggested sentiment remained weak.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
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USD |
FOMC Member Lockhart Speaks |
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Upcoming Economic Events that you should be monitoring:
Tuesday, August 25, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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EUR |
German GDP (QoQ) (Q2) |
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0.4% |
0.4% |
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EUR |
German GDP (YoY) (Q2) |
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1.6% |
1.6% |
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CHF |
Employment Level (Q2) |
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4.225M |
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EUR |
German Business Expectations (Aug) |
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102.0 |
102.4 |
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EUR |
German Current Assessment (Aug) |
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113.9 |
113.9 |
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EUR |
German Ifo Business Climate Index |
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107.8 |
108.0 |
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USD |
S&P/CS HPI Composite – 20 n.s.a. |
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5.1% |
4.9% |
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USD |
Services PMI (Aug) |
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56.0 |
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USD |
CB Consumer Confidence (Aug) |
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93.3 |
90.9 |
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USD |
New Home Sales (MoM) (Jul) |
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6.0% |
-6.8% |
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USD |
New Home Sales (Jul) |
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510K |
482K |